According to a recent Moody's Personal Lines Outlook, Homeowners'insurers were profitable through the first half of 2015 after twostraight profitable years in 2013 and 2014. Homeowner's insurershave benefitted from continued rate increases, although Moody'snotes these increases are slowing — from 7% in 2013 to 5.4% in2014, to about 4% expected in 2015, partly because of lowercatastrophe reinsurance costs.
|The Moody's report notes that insurers have been adopting “moresophisticated by-peril rating plans to better align premiums tospecific perils,” such as wind, fire, hail, lightning and theft.“Assuming it is well-executed,” the report continues, “themultivariate approach should improve pricing efficiency and reduceearnings volatility.”
|Related: The housing game has changed. Are you playing towin?
|Below, a summary of Homeowners' insurance findings from SNLFinancial, Moody's and Munich Re. Click image to expand.
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Related: These infographics tell the story of 2015 ininsurance
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